Amended tax return

[willh43]

Hi all,

Single filer here. I have already filed my 2024 tax return and I noticed that I forgot to report $267 in LT capital gains ($430 in proceeds) from cryptocurrency. My total income for 2024 is less than $40,000 so my long-term capital gain rate is 0%. Because I already filed, and I don't expect this new income to change my refund amount, do I need to file an amended return? The only thing an amended return would do (I think) is increase my reported income, but ultimately will not have an effect on the amount of refund I will receive from my original return. I filed my original return one week ago and expect to receive the refund in the next week or two. 

Thanks 

[Vanessa A]

Because it will affect your adjusted gross income, it is a good idea to still file the amended return if the IRS does not catch this omission and send you a letter of correction.  You are correct, that it will not affect your refund, so that means you will not need to send any money in with your amended return, however, since it will affect your other income, you should amend your return. 

[willh43]

Thanks for the reply @Vanessa A . Even though the amount is minuscule and does not affect the refund amount, I should file an amended return? It would only increase my AGI by $267.

Are there any penalties if the IRS sends a letter of correction? If they don't catch it this year will they look at it in the following years? 

Sorry one last thing, should I wait until I receive my refund or can I file an amended return now? 

[Vanessa A]

Yes, even though it is a small amount that it increases your AGI by, you should still amend.  

No, there are not penalties if the IRS sends you a letter of correction, when you do not owe them anything.  

It is hard to say if they would ever catch it if they don't catch it this year. 

You should still wait until you receive your refund as that is when you know the IRS has processed your return and either caught the error or did not. 

Additionally, the forms are not quite available yet, but you can see when they will be by using this tool